1. 3 Exponential and Logarithmic Functions
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2. EXPONENTIAL FUNCTIONS AND THEIR GRAPHS
3.1
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3. What You Should Learn
Recognize and evaluate exponential functions with base a.
Graph exponential functions and use the One-to-One Property.
Recognize, evaluate, and graph exponential functions with base e.
Use exponential functions to model and solve real-life problems.

4. Exponential Functions

5. Exponential Functions
So far, this text has dealt mainly with algebraic functions, which include polynomial functions and rational functions.
In this chapter, you will study two types of nonalgebraic functions–exponential functions and logarithmic functions. These functions are examples of transcendental functions.

6. Exponential Functions
The base a = 1 is excluded because it yields f (x) = 1x = 1. This is a constant function, not an exponential function.
You have evaluated ax for integer and rational values of x.
For example, you know that 43 = 64 and 41/2 = 2.
However, to evaluate 4x for any real number x, you need to interpret forms with irrational exponents.

7. Exponential Functions
For the purposes of this text, it is sufficient to think of
(where  )
as the number that has the successively closer approximations
a1.4, a1.41, a1.414, a1.4142, a ,

8. Example 1 – Evaluating Exponential Functions
Use a calculator to evaluate each function at the indicated value of x.
Function Value
a. f (x) = 2x x = –3.1
b. f (x) = 2–x x = 
c. f (x) = 0.6x x =

9. Example 1 – Solution a. f (–3.1) = 2–3.1 0.1166291
Function Value Graphing Calculator Keystrokes Display
a. f (–3.1) = 2–
b. f () = 2–
c. f = 0.63/

10. Graphs of Exponential Functions

11. Example 2 – Graphs of y = ax
In the same coordinate plane, sketch the graph of each function.
a. f (x) = 2x
b. g(x) = 4x

12. Example 2 – Solution
The table below lists some values for each function, and Figure 3.1 shows the graphs of the two functions.
Note that both graphs are increasing. Moreover, the graph of g(x) = 4x is increasing more rapidly than the graph of f (x) = 2x.
Figure 3.1

13. Graphs of Exponential Functions
The basic characteristics of exponential functions y = ax and y = a–x are summarized in Figures 3.3 and 3.4.
Graph of y = ax, a > 1
Domain: ( , )
Range: (0, )
y-intercept: (0, 1)
Increasing
x-axis is a horizontal asymptote (ax→ 0, as x→ ).
Continuous
Figure 3.3

14. Graphs of Exponential Functions
Graph of y = a–x, a > 1
Domain: ( , )
Range: (0, )
y-intercept: (0, 1)
Decreasing
x-axis is a horizontal asymptote (a–x → 0, as x→ ).
Continuous
From Figures 3.3 and 3.4, you can see that the graph of an exponential function is always increasing or always decreasing.
Figure 3.4

15. Graphs of Exponential Functions
As a result, the graphs pass the Horizontal Line Test, and therefore the functions are one-to-one functions.
You can use the following One-to-One Property to solve simple exponential equations.
For a > 0 and a ≠ 1, ax = ay if and only if x = y.
One-to-One Property

16. The Natural Base e

17. The Natural Base e
In many applications, the most convenient choice for a base is the irrational number
e 
This number is called the natural base.
The function given by f (x) = ex is
called the natural exponential
function. Its graph is shown in
Figure 3.9.
Figure 3.9

18. The Natural Base e Be sure you see that for the exponential function
f (x) = ex, e is the constant , whereas x
is the variable.

19. Example 6 – Evaluating the Natural Exponential Function
Use a calculator to evaluate the function given by
f (x) = ex at each indicated value of x.
a. x = –2
b. x = –1
c. x = 0.25
d. x = –0.3

20. Example 6 – Solution a. f (–2) = e–2 0.1353353
Function Value Graphing Calculator Keystrokes Display
a. f (–2) = e–
b. f (–1) = e–
c. f (0.25) = e
d. f (–0.3) = e–

21. Applications

22. Applications
One of the most familiar examples of exponential growth is an investment earning continuously compounded interest.
Using exponential functions, you can develop a formula for interest compounded n times per year and show how it leads to continuous compounding.
Suppose a principal P is invested at an annual interest rate r, compounded once per year. If the interest is added to the principal at the end of the year, the new balance P1 is
P1 = P + Pr
= P(1 + r).

23. Applications
This pattern of multiplying the previous principal by 1 + r is then repeated each successive year, as shown below.
Year Balance After Each Compounding
P = P
P1 = P(1 + r)
P2 = P1(1 + r) = P(1 + r)(1 + r) = P(1 + r)2
P3 = P2(1 + r) = P(1 + r)2(1 + r) = P(1 + r)3
t Pt = P(1 + r)t … …

24. Applications
To accommodate more frequent (quarterly, monthly, or daily) compounding of interest, let n be the number of compoundings per year and let t be the number of years.
Then the rate per compounding is r/n and the account balance after t years is
If you let the number of compoundings n increase without bound, the process approaches what is called continuous compounding.
Amount (balance) with n compoundings
per year

25. Applications
In the formula for n compoundings per year, let m = n/r. This produces
Amount with n compoundings per year
Substitute mr for n.
Simplify.
Property of exponents

26. Applications As m increases without bound, the table below shows that
[1 + (1/m)]m→e as m → .
From this, you can conclude that
the formula for continuous
compounding is
A = Pert.
Substitute e for (1 + 1/m)m.

27. Applications

28. Example 8 – Compound Interest
A total of $12,000 is invested at an annual interest rate of 9%. Find the balance after 5 years if it is compounded
a. quarterly.
b. monthly.
c. continuously.

29. Example 8(a) – Solution
For quarterly compounding, you have n = 4. So, in 5 years at 9%, the balance is
Formula for compound interest
Substitute for P, r, n, and t.
Use a calculator.

30. Example 8(b) – Solution
cont’d
For monthly compounding, you have n = 12. So, in 5 years at 9%, the balance is
Formula for compound interest
Substitute for P, r, n, and t.
Use a calculator.

31. Example 8(c) – Solution For continuous compounding, the balance is
cont’d
For continuous compounding, the balance is
A = Pert
= 12,000e0.09(5)
≈ $18,
Formula for continuous compounding
Substitute for P, r, and t.
Use a calculator.